Have you reached your golden years and you’re already enjoying your Social Security benefits? Perhaps you’ve just barely reached the age of retirement and you’re still deciding whether or not you should start collecting your payments now, or if you’d be better off waiting for a few more years. Social Security benefits are an important part of many retirees’ monthly income, but for those who earn a little more than others and who expect that they might owe some taxes on their Social Security benefits, this year might be a good time to consider some tax-saving options.
That’s because 2015 looks like a down year for Social Security. According to reports, Social Security benefits likely will not be adjusted for inflation, However, Medicare Part B premiums are expected to rise for those retirees with higher incomes. Therefore, if you can find ways to decrease your tax bill on your Social Security benefits it’s probably a good idea to take advantage of your opportunities. There are several ways to save on your tax bill if you’re a higher-income earner and you expect to owe taxes on your Social Security benefits.
From delaying your benefits to rethinking your investments and retirement accounts, here are a few ideas to help you avoid a larger tax bill on Social Security.
Retirement is supposed to be a time of relaxation and enjoyment and not a time of worry, especially about taxes. However, you have to make sure you are prepared financially for those golden years or they could turn gray very quickly. No two situations are exactly the same, so be sure to consider all your options and determine which strategy is best for your circumstances. Just make sure you do something, because you don’t want get caught behind the tax eight ball and end up owing more than you can handle, especially in retirement.
This post was published on October 26, 2015